Expert Says 1.54M Shiba Inu Holders Remain Hopeful, But Key Challenges Persist

A popular market commentator has highlighted the increasing number of wallets holding Shiba Inu, underscoring continued user interest in the token

Citing data from Etherscan, the pundit revealed that the number of addresses holding SHIB rose by 0.01% over the past day to 1,546,558 (1.54 million). As of press time, the figure had climbed further to 1,546,786 (1.54 million), representing a daily increase of 0.003%.

Shiba Inu Dips Below $0.00001

Notably, the growth in Shiba Inu’s address count comes as SHIB’s price continues to dip amid the broader market downturn. Shiba Inu has repeatedly dropped below the $0.00001 since October 10 and has been struggling to recover.

At press time, SHIB was trading at $0.000009951, with a market capitalization of $5.86 billion. The token has declined by 47.52% over the past year, 52.9% year-to-date (YTD), and 23.28% over the past 30 days. It has also fallen by 2.47% and 8.34% in the daily and weekly timeframes, respectively.

While the steady increase in on-chain holders signals renewed confidence in Shiba Inu’s long-term potential, uncertainty remains about whether SHIB can reclaim its former glory—when its price spiked by hundreds of percent in a matter of days.

Factors Preventing a Potential Rally

One of the biggest challenges hindering SHIB’s growth is its enormous token supply. Despite ongoing token burns, Shiba Inu still has a massive circulating supply of approximately 589 trillion tokens. Critics argue that a supply of this scale could obstruct future price rallies.

With a circulating supply of 589 trillion tokens, Shiba Inu would require a market cap of $52.09 billion to reach its all-time high (ATH) of $0.00008845.

Although this valuation is modest compared to that of more established tokens, many believe SHIB currently lacks the momentum to reach that milestone.

Team Leadership Style Hindering Institutional Adoption

Some community members believe Shiba Inu’s anonymous leadership has deterred institutional adoption. The identities of the project’s core team remain undisclosed, a feature once celebrated for promoting decentralization during SHIB’s early days.

However, as Shiba Inu has evolved into a multi-billion-dollar ecosystem, many now argue that increased transparency and accountability are crucial for attracting institutional investors.

Lack of New Utility

Shiba Inu has made significant progress in rolling out utility projects, particularly Shibarium, to drive adoption. However, these projects have not achieved the desired result.

To reignite momentum and clear the path for a major rally, the team needs to introduce more real-world use cases.

Rising Competition

Shiba Inu is now facing intense competition from rivals. These projects are evolving fast, attracting investors’ attention to them.

As a result, SHIB must continue to innovate to remain relevant. Notably, the team should prioritize completing existing initiatives, such as the NFT marketplace and metaverse, before launching new ones.

Team’s Support for Other Projects

Some team members have previously expressed support for other crypto projects, diverting investor focus and capital away from SHIB. Such actions undermine Shiba Inu’s growth prospects and weaken investor confidence.

To ensure long-term stability and growth, the team must show stronger commitment to the Shiba Inu ecosystem and align their efforts toward its sustained success.

Weak Community Momentum

Despite the rise in on-chain holders, the broader community momentum that once fueled SHIB’s rallies has sharply declined.

Investors are less active on social media in promoting SHIB or attracting new users, while many formerly influential supporters have shifted their focus to rival projects. For Shiba Inu to regain its previous strength, this lost community energy and enthusiasm must be revived.